Shares of International Paper Co (NYSE:IP) ended Tuesday session in green amid volatile trading. The shares closed up +0.36 points or 0.70% at $51.77 with 2,463,325 shares getting traded. Post opening the session at $51.25, the shares hit an intraday low of $51.00 and an intraday high of $51.80 and the price vacillated in this range throughout the day. The company has a market cap of $21.69 billion and the numbers of outstanding shares have been calculated to be 411.21 million shares.
International Paper Co (IP) declared that it has accomplished its acquisition of Weyerhaeuser’s pulp business for about $2.2 billion in cash, subject to post-closing adjustments. Because the transaction is a purchase of assets, International Paper anticipates to realize a tax benefit with an estimated net present value of about $300 million. International Paper anticipates annual synergies of about $175 million by the end of 2018, which will require the need for one-time costs of about $85 million.
In this transaction, International Paper attained five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp products for a number of consumer applications counting diapers, other hygiene products, tissue, and textiles. The attained business has about 1,900 employees around the world, with manufacturing operations based in Canada, Poland and the U.S. (located in Mississippi, Georgia and North Carolina).
The combined businesses will be called Global Cellulose Fibers, led by senior vice president Jean-Michel Ribieras, and stated as a separate business segment starting with the Company’s release of earnings for the fourth quarter of 2016.
“This transaction positions International Paper as the premier global supplier of fluff pulp and enhances our ability to generate additional cash flow,” said International Paper Chairman and CEO Mark Sutton. “I want to personally welcome the talented employees of Weyerhaeuser to the International Paper family as we look forward to serving our customers around the world.”